Which of the Following Is Not a Characterization of Activity-Based

question 56

Multiple Choice

Which of the following is not a characterization of activity-based costing?

• A) identification of only variable costs
• B) a focus on both operating and strategic decisions
• C) identifying all resources used by activities regardless of how individual costs behave in the short run
• D) using the cost hierarchy to allocate costs to products
• E) identification of all costs used by activities

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Definitions:

Maintenance Costs

Expenses associated with the upkeep of buildings, equipment, machinery, or vehicles to ensure proper functionality and efficiency.

Machine Hour

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and efficiency.

Total Salaries

The aggregate amount of compensation paid to employees before deductions, such as taxes and retirement fund contributions, are made.

Quality Control Supervisors

Professionals responsible for overseeing the testing of products and materials to ensure they meet predetermined standards and specifications.